2013 01-09OVERSIGHT BOARD MINUTES
(TO THE SUCCESSOR AGENCY OF THE POWAY REDEVELOPMENT AGENCY)
January 9, 2013
City of Poway, City Hall,
Main Conference Room # 20607 2 "d Floor,
13325 Civic Center Drive, Poway, CA 92064
CALL TO ORDER
The meeting was called to order at 8:30 a.m.
ROLL CALL.
Present were:
CHAIR:
VICE CHAIR:
BOARD MEMBER:
BOARD MEMBER:
BOARD MEMBER:
BOARD MEMBER:
BOARD MEMBER:
Other Attendees:
Bruce Tarzy, MD, City of Poway
Lois Fong- Sakai, County Board of Supervisors
Phyllis Laderman, Palomar Community College District
Jim Lyon, City of Poway (former RDA employee)
Tom Scott, County Board of Supervisors
David Tam, MD, Palomar Health
Malliga Tholandi, San Diego County Board of Education
Penny Riley, City Manager, City of Poway; Tina White, Assistant City Manager, City
of Poway; Scott Edwards, Director of Administrative Services, City of Poway; Andrew
White, Finance Manager, City of Poway; and Ashley Jones, Senior Management
Analyst, City of Poway.
PUBLIC COMMENT
None.
BOARD BUSINESS
1. Approval of the October 10, 2012 and January 2, 2013 Special Meeting Minutes
of the Oversight Board to the Successor Agency of the Poway Redevelopment
Agency.
Motion by Board Member Lyon, seconded by Vice Chair Fong -Sakai to approve the
October 10, 2012 Minutes and amending the January 2, 2013 Minutes to clearly
reflect that no meeting occurred due to a lack of quorum. Motion carried unanimously,
with Board Members Scott and Laderman abstaining.
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Oversight Board Minutes — January 9, 2013
2. Public Comment session to consider "Independent Accountant's Report on
Applying Agreed -Upon Procedures Relating to the Due Diligence Review in
accordance with AB 1484 applied to the Successor Agency for the year ended
June 30, 2012."
The Oversight Board convened a Public Comment session as required by the
California Health and Safety Code Section 34179.6(b).
Administrative Services Director Edwards presented the Independent Accountant's
Report to the Board, explaining in detail Exhibits A -F of the Report. Director Edwards
reported that staff is currently working to reconcile Exhibit B to the City's and former
Redevelopment Agency's real property records. It came to staff's attention while
preparing the due diligence review that the City and Agency financial schedules did
not reflect changes in ownership that have occurred over the years. Staff will be
working with the auditors to revise Exhibit B, provide the auditor with the necessary
documentation, and then issue an amended Exhibit B by close of business Friday,
January 11, 2013, so that the Board has the Exhibit in advance of next week's
meeting.
Chair Tarzy asked about the fate of joint -use facilities, where the former
Redevelopment Agency partnered with the Poway Unified School District. City
Manager Riley explained that the provisions of AB 1484 require the Successor
Agency to expeditiously dispose of former redevelopment real property; this
requirement does not apply to improvements so joint -use facilities would not be
subject to disposition.
Chair Tarzy inquired about the Learning Resource Centers constructed at several
middle schools with the assistance of the former Redevelopment Agency. City
Manager Riley explained that these improvements were expensed, not treated as an
asset of the former Agency, and therefore not reflected on its financial statements or
real property schedules.
Discussion ensued around the capital assets listed in Exhibit B. City Manager Riley
described for the Board the process set forth in AB 1484 for the disposition of real
property. Staff will return to the Board with a Real Property Management Plan later
this year that will provide greater detail about each property, accompanied by a
proposed use (e.g., disposition or retention) as permitted under the law.
Board Member Tholandi asked about Exhibit A and how it was possible for the Cash
and Investments of the Successor Agency to be higher on June 30, 2012, than the
Cash and Investments of the former Redevelopment Agency had been on January
31, 2012, when Redevelopment dissolved. City Manager Riley explained that prior to
the dissolution of Redevelopment, the Agency had repaid a number of internal loans
to the City. With the passage of AB 1484 it became clear that the loan repayments
must be reversed and the City must complete the process spelled out in AB 1484
before repayment can be made. The loan reversals are reflected in the Successor
Agency Cash and Investments as of June 30, 2012, causing it to increase by more
than $18 million.
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Oversight Board Minutes — January 9, 2013
The Board is scheduled to meet on January 15, 2013, at which time the Due
Diligence Review will be considered for approval.
CHAIR AND BOARD MEMBERS' COMMENTS
Chair Tarzy welcomed Board Member Laderman who was sworn in January 2, 2013 as
the representative for Palomar Community College District. He went on to thank former
Board Member Rose Marie Dishman, who was in attendance as a member of the
public, for her service to the Board and community on behalf of Palomar Community
College District.
Board Member Lyon thanked staff for their efforts to complete the Due Diligence
Review.
ADJOURNMENT
The meeting was adjourned at 9:08 a.m.
Krist n M. Crane, Interim City Clerk
City of Poway, California
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